Wal-Mart expects to incur losses related to overseas bribery probe

March 26, 2013|Reuters

March 26 (Reuters) - Wal-Mart Stores Inc said in aregulatory filing on Tuesday that is now "probable" it willincur losses related to allegations that companyrepresentatives had bribed officials in Mexico to speed upexpansion there.

Wal-Mart said in its annual report, filed with the U.S.Securities and Exchange Commission, that it could not estimatehow much any loss would come to because of the complexity of therelated probes and internal review, but that it would not have amaterial effect on its business.

The bribery allegations surfaced in a New York Times reportlast year that said the company had intentionally stifled anearly internal probe into claims that Wal-Mart de Mexicoofficials had paid bribes years earlier to help build storesthere.

The matter cost Wal-Mart $157 million in the fiscal yearthat ended Jan. 31 and the tally will rise, the retailer said.

"We expect to continue to incur costs ... in conducting ouron-going review and investigations," Wal-Mart said. As of threemonths earlier, the costs had come to $99 million.

Last year, Wal-Mart made a profit of $17 billion on sales of$469 billion.